Lear, Penske eye move to city industrial park

Lear Corp. and Penske Corp. could become two anchor tenants in a large automotive industrial park development in Detroit.

Mayor Mike Duggan is asking the state Legislature to approve land in the city as a Next Michigan Development Corp. development, Gongwer News Service reported last week.

Anonymous sources confirmed to Crain's on Dec. 4 the development is the city-led, 189-acre I-94 Industrial Park.

As such a development, the site near the junction of I-94 and I-75 would be able to offer economic incentives to businesses that use multiple modes of transportation. This includes state and local incentives, tax increment financing and property tax abatements -- as long as the business uses at least two of the four designated transportation modes: air, freight, rail or water.

Sources said there is interest from Southfield-based Lear and Bloomfield Hills-based Penske. However, it's unclear whether the groups are close to signing a deal or if that deal is contingent on the Next Michigan designation.

Lear declined to comment. Penske did not immediately return a phone call for comment.

Speaking to the Committee on Economic Development on Wednesday, Duggan told state lawmakers the deal wasn't done, but the approval of the NMDC designation would be "a key piece of getting it closed," Gongwer reported.

House Bill 4783 is awaiting Senate approval after the committee recommended passage.

The development is part of the Detroit Economic Growth Corp.'s plan for the I-94 Industrial Park -- which has been more than 15 years in the making.

The park is just north of I-94 and bounded by Mount Elliott Street, Miller Street, Huber Street, Winfield Avenue and St. Cyril Street.

Dan Labes, senior managing director in the Southfield office of Newmark Grubb Knight Frank, said the site has enormous potential because of its proximity to I-94 and the Coleman A. Young Municipal Airport.

Its renaissance zone designation is also a large benefit, he said.

"Especially with the economic incentives, it's a fantastic site," said Labes, who worked with Exel Logistics in its deal at industrial park.

The park is close to I-94, Van Dyke Avenue and Gratiot Avenue, and it has rail access via Consolidated Rail Corp. Incentives are also available.

It's unclear whether the DEGC would lease or sell the land to a developer or one or both of the anchor tenants.

The Michigan Legislature, under a 2010 law, has approved six regions for NMDC designation: Areas near Detroit Metropolitan Airport, a Lansing district, a Traverse City zone, a Flint trade corridor, a Grand Rapids region and an Upper Peninsula site.